A major $5 billion pipeline deal is heating up in the Gulf Coast, underscoring the explosive growth in U.S. natural gas infrastructure driven by surging demand from LNG exports, power generation, and AI data centers.
Texas-based private equity firm EnCap Flatrock Midstream is exploring the sale of Momentum Midstream, a leading Gulf Coast natural gas midstream operator, in a transaction that could fetch more than $5 billion, according to Bloomberg and OilPrice.com reports published today. Talks are in the very early stages, and the sale may not ultimately proceed, but the potential valuation highlights how valuable these assets have become amid the regional boom.
Momentum Midstream: A Gulf Coast Powerhouse
Momentum operates a premier integrated natural gas system spanning the Haynesville Shale from East Texas into Louisiana. Key stats include: 4,000 miles of pipelines
6 Bcf/d system capacity (with ~4 Bcf/d in minimum volume commitments)
20 Bcf/d total connectivity through 91 interconnections
Direct service to 10 LNG-producing facilities and 26 power plants
The crown jewel is the NG3 Pipeline — a 250-mile, 2.3 Bcf/d system linking Haynesville supply directly to the Gillis Hub in southeastern Louisiana (the epicenter of U.S. LNG demand). It began early gas deliveries in October 2025, adding 300 MMcf/d of takeaway capacity, and features advanced CO₂ capture for delivering some of the “cleanest” natural gas molecules to market.
Positioned at the heart of U.S. natural gas demand, Momentum connects abundant Haynesville supply to premium Gulf Coast markets: LNG terminals, gas-fired power plants, industrial users, and petrochemical facilities.
Why Now? The Perfect Storm of Demand
Natural gas pipelines have become some of the most sought-after energy assets as demand skyrockets. Drivers include: Record LNG exports (Gulf Coast feedgas demand routinely exceeds 15–20 Bcf/d and is projected to climb further)
Surging power needs from AI data centers and population growth
Industrial and petrochemical revival along the Gulf Coast
Energy consultancy Wood Mackenzie noted last year that companies have already committed $50 billion to build or expand 8,800 miles of new gas pipelines across the U.S., led by LNG producers, power utilities, and Big Tech. Twelve major projects in Texas, Louisiana, and Oklahoma alone are set to boost Gulf Coast capacity by 13% this year — the largest expansion since 2008.
This environment makes established, contracted midstream assets like Momentum extremely attractive to both strategic buyers and other private equity firms.
Investor Angle: Who Benefits and Who to Watch
This potential blockbuster deal shines a spotlight on the entire Gulf Coast natural gas midstream sector. Publicly traded pipeline companies with heavy exposure here stand to gain from rising volumes, long-term fee-based contracts, and the broader infrastructure buildout.
Top pipeline/midstream companies investors should evaluate now (in no particular order — always do your own due diligence; this is not financial advice): Energy Transfer (ET) — Massive Gulf Coast and Permian footprint. The company just outlined $5–5.5 billion in 2026 growth capital, heavily tilted toward natural gas pipelines and processing serving data centers, LNG, and Gulf Coast markets. Projects like the Hugh Brinson Pipeline (Permian-to-Louisiana Gulf Coast) and Texas data-center laterals position it perfectly for the boom.
Enterprise Products Partners (EPD) — One of the largest and most diversified Gulf Coast players with extensive pipelines, storage, and export connectivity. Known for rock-solid fee-based contracts, a conservative balance sheet, and consistent distributions.
Kinder Morgan (KMI) — Operates the largest natural gas pipeline network in North America (tens of thousands of miles), with significant Gulf Coast and Haynesville exposure. Steady, utility-like cash flows.
Williams Companies (WMB) — Strong Transco system serving the East Coast plus direct Gulf Coast LNG ties (including projects feeding Sabine Pass and Louisiana LNG). Well-positioned for both domestic power and export growth.
Other names frequently cited in the sector include ONEOK (OKE), MPLX, and Enbridge (ENB) for their scale and diversification.
These midstream names typically offer attractive yields, high distribution coverage, and volume-driven growth that is largely insulated from commodity price swings — thanks to take-or-pay and fee-based contracts. The Momentum sale process could spark further M&A interest across the space.
Bottom Line
Whether or not the Momentum deal closes at $5 billion+, it is a clear signal: the Gulf Coast natural gas midstream sector is in a structural upcycle. With AI power demand, LNG exports, and industrial needs all accelerating, established pipeline networks connecting supply to these high-value markets are worth their weight in gold.
Stay tuned to Energy News Beat for updates as this story develops — and as more capital flows into the pipes powering America’s energy future. Sources: Bloomberg, OilPrice.com, Momentum Midstream website, EIA, Wood Mackenzie, company announcements. This article is for informational purposes only and does not constitute investment advice. We will be covering this on the Energy News Beat Stand Up, and we love showing investment tools, but recommend you get your investment advice from your CPA and certified investment professionals.
Get your CEO on the #1 Energy Podcast in the United States: https://sandstoneassetmgmt.com/media/
Is oil and gas right for your portfolio? https://sandstoneassetmgmt.com/invest-in-oil-and-gas/
Be the first to comment